Executive Summary

Q3 net sales were $171.9M (-6.5% YoY) and GAAP diluted EPS was $(0.05); adjusted EPS was $0.11. Gross margin was 35.1% (down 160 bps YoY) as pricing actions preserved margin dollars but lowered margin percentage .
Versus S&P Global consensus, revenue missed ($176.0M* vs $171.9M) and EPS normalized missed ($0.14* vs $0.11); both small shortfalls as tariffs and order timing weighed on the top line (S&P Global) .
Management highlighted tariff volatility, pricing actions that “approximately offset” tariff cost increases, and a shift of orders from Q3 to Q4 at two of the three largest customers; they reiterated no formal financial guidance given uncertainty .
Cost control and Project Concord remained supportive: SG&A declined 8.5% YoY to $35.5M; TTM adjusted EBITDA was $47.2M with liquidity of ~$50.9M at quarter-end; the Board declared a $0.0425 dividend payable Feb 13, 2026 .

What Went Well and What Went Wrong

What Went Well

International achieved growth: sales +1.5% YoY to $13.8M; International gross margin improved to 35.5% on favorable mix .
Cost discipline and efficiency: SG&A fell 8.5% YoY to $35.5M; U.S. distribution expense as a % of goods shipped improved to 8.5% (ex non-recurring) from 10.1% on labor efficiencies .
Product momentum: management cited strong performance in Dolly, Build‑A‑Board, and S’well glass hydration; cutlery and kitchen measurement continued to gain share .

Quote (CEO): “Our tariff mitigation strategy is now fully in place… The Dolly line and the expanded Build‑A‑Board collection have performed well… [and] our new glass bottle line under the S’well brand has launched successfully.”

What Went Wrong

Top line pressure: consolidated net sales declined 6.5% YoY to $171.9M; U.S. segment fell 7.1% to $158.1M, with Tableware down 22.7% and Home Solutions down 12.8% on retailer order shifts and softer demand .
Margin dilution: gross margin rate fell to 35.1% (from 36.7%) as pricing actions preserved gross profit dollars but lowered the percentage mix .
Elevated tax rate: the effective tax rate was 171.1% in Q3, influenced by non‑deductible expenses and a partial valuation allowance, contributing to a GAAP net loss .

Financial Results

Headline summary and trends

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Net Sales ($M)	183.8	140.1	131.9	171.9
GAAP Diluted EPS ($)	0.02	(0.19)	(1.83)	(0.05)
Adjusted Diluted EPS ($)	0.21	(0.25)	(0.50)	0.11
Gross Margin %	36.7%	36.1%	38.6%	35.1%
Income from Operations ($M)	8.6	1.1	(37.2) (incl. goodwill impairment)	6.7
Adjusted Income from Operations ($M)	13.2	(0.9)	0.9	11.5

Q3 2025 vs Consensus (S&P Global)

Metric	Consensus	Actual	Surprise
Revenue ($M)	176.0*	171.9	(2.3%)*
EPS Normalized ($)	0.14*	0.11	(0.03)*

Values marked with * retrieved from S&P Global.

Segment performance (Q3 2025 vs Q3 2024)

Metric	Q3 2024	Q3 2025
U.S. Net Sales ($M)	170.2	158.1
International Net Sales ($M)	13.6	13.8
U.S. Gross Margin ($M)	62.7	55.6
International Gross Margin ($M)	4.7	4.9
U.S. Gross Margin %	36.8%	35.1%
International Gross Margin %	34.6%	35.5%

KPIs and balance sheet highlights

KPI (Q3 2025)	Value
Distribution expense (total)	$17.9M
U.S. distribution as % of shipped (ex. non‑recurring)	8.5% (vs 10.1% LY)
SG&A	$35.5M (–8.5% YoY)
Liquidity	~$50.9M (cash + ABL constrained + RPA)
TTM Adjusted EBITDA	$47.2M
Net Debt / Adjusted EBITDA	4.2x as of 9/30/25

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated financial outlook	FY2025	No formal guidance (Q1/Q2 stance)	No formal guidance continued	Maintained
Dividend per share	Quarterly	$0.0425 (declared Aug 5, 2025, paid Nov 14, 2025)	$0.0425 declared for payment Feb 13, 2026	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 2025)	Trend
Tariffs & pricing	Q1: 145% China tariff shock, 6–16% price hikes planned from May 15; Q2: shipment pauses, ~$30M revenue impact, pricing still phasing in	Tariffs remain volatile; management notes announced 10% reduction on China tariffs; pricing “approximately offsets” tariff costs, with full effects into Q4	Stabilizing but choppy
Supply chain diversification	Q1: capability to move ~80% production outside China by YE25; Mexico/SE Asia ramp	Flexibility to pivot across regions; some production shifted back to China due to logistics constraints; diversified footprint “firmly in place”	Executing with tactical adjustments
Project Concord (International)	Q1: on track to improve profitability in 2025	Nearing finish line on major initiatives; international top- and bottom-line progress; restructuring charges recognized	Progressing
Distribution network	Q1: Hagerstown DC capex outlook improving; efficiencies long term	Transition remains on track; near-term warehouse software and transition costs in U.S. distribution	Short-term friction, long-term benefit
Product/category performance	Q1: strength in e‑commerce/dollar/club; foodservice building	Dolly, Build‑A‑Board, S’well glass hydration performing well; cutlery/measurement strong	Positive momentum
M&A pipeline	Q1: cautious, conservative diligence amid volatile valuations	Higher inbound interest; financial buyers less active; valuations more attractive; active evaluation	Increasing opportunity

Management Commentary

Strategic positioning: “Our tariff mitigation strategy is now fully in place… [and] the diverse geographic footprint… is firmly in place, and we are positioned to adjust our sourcing across regions” .
Demand outlook and order timing: “We expect that shipments to two of our three largest customers will rebound in the fourth quarter due to a shift of orders from the third quarter to the fourth quarter” .
Pricing and gross margin dollars: “Our pricing actions were designed to maintain gross margin dollars, which arithmetically results in a lower gross margin percentage” .
Balance sheet and profitability quality: “Liqudity remains solid at $51 million, and adjusted EBITDA for the trailing 12 months… was $47.2 million” .
M&A environment: “We are actively engaged… we’re seeing a meaningful reduction in valuation… [and] good valuations… with meaningful synergies and cost eliminations” .

Q&A Highlights

Pricing vs volume and tariff pass-through: CFO: “our price increase approximately offsets the additional tariffs… still being phased in… additional impact in the fourth quarter” .
Sourcing mix and China: CEO detailed flexibility to shift between Southeast Asia and China due to logistics constraints, with economics currently favorable “all in” including tariffs; can flex up to ~80% out of China when conditions warrant .
Order timing/holiday: Management expects Q4 rebound for two of three largest customers due to Q3→Q4 order shift; still cautious on holiday sell-through .
M&A valuations: With financial buyers on the sidelines, management is seeing reduced multiples and synergy-driven opportunities .

Estimates Context

Q3 2025 revenue and EPS normalized missed S&P Global consensus: Revenue $176.0M* vs $171.9M actual; EPS normalized $0.14* vs $0.11 actual. Shortfalls reflect tariff-induced choppiness and retailer order timing .
Street models may adjust revenue phasing (more Q4/2026 from delayed shipments) and assume lower gross margin percentage as price actions prioritize gross profit dollars over rate, while factoring ongoing cost discipline and Concord benefits .